Management Information System

Section - 01
Course ID - MIS442
Report On - S Commerce
Submitted to - Abul Khair Phd
Submitted by-

Name ID

Tafrid Ali Khan 2111201

Sakibur Rahman 2130571

Anujit Dutta 1910762

Abu Bokor Siddik Rafe 2010439

Shafaiet Hossain 1930406

Uzair Saqib 2131017

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 Table of Contents
Executive Summary 3
1. Introduction 4
1.1 Study of the Background 4
1.2 Problem Statement 5
1.3 Objective of the study 6
1.4 Limitation of the study 6
2. Literature Review 7
2.1 Contextual Literature Review 7
Classification 7
Benefits of Social Media Commerce: 9
Drawbacks of Social Commerce: 9
2.2 Theoretical literature Review 10
3. Research Methodology 11
3.1 Research Type 11
3.2 Research Approach 11
3.2.1 Data Collection Method 11
3.6. Data Analysis Method 11
4. Analysis, findings and implications 13
4.1 Analysis 13
4.2. Findings 14
4.3 Implications 18
5. Conclusion 19
References 20
Appendix 21

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Executive Summary

In recent years, internet penetration and smartphone usage has transformed consumer behavior in
Bangladesh, creating vast opportunities for S-Commerce platforms to flourish. Social media
platforms like Facebook, Instagram, and WhatsApp have become the primary channels through
which businesses showcase products, engage with customers, and drive sales.
Bangladesh has seen an immense rise in mobile usage, making S-Commerce more accessible to a
broader demographic. Businesses are investing in mobile-friendly interfaces and smooth
payment channels to improve the user experience as smartphone use continues to climb. While
S-Commerce has tremendous potential, there are obstacles to overcome, such as rivalry from
existing e-commerce businesses, data protection, and raising customer awareness and trust in
online shopping. Awareness and education is one of the downfalls for S-commerce. In this report
we would be discussing some of the key points for S-commerce rise and about the obstacles it
may have.

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1. Introduction

1.1 Study of the Background

The internet's rapid expansion and the growth of social media platforms have transformed the
way people communicate, connect, and engage with information. In recent years, a new trend in
the digital world has gained substantial momentum, Social Commerce sometimes known as "S
Commerce." S Commerce is the fusion of social media and e-commerce, resulting in a new
paradigm in which social networks act as a marketplace for buying and selling goods and
services. E- Commerce platforms have been dominating the online retail industry, offering
consumers a diverse range of products and services. These platforms however, are primarily
focused on transactional interactions, lacking the personalized and social features of traditional
retail experiences. Recognising the promise of social media's enormous user base along with
interactive capabilities, businesses began experimenting with integrating e-commerce operations
into social networks, resulting in the establishment of Social Commerce.
Customers are now the central focus for the firms. The S-commerce environment has shifted
e-commerce from a product-oriented platform to customer-oriented environment. The idea
behind s-commerce is that social media enhances vendors' commercial transactions by fostering
stronger relationships with customers, improving the quality of those interactions, increasing
sales, and driving customer loyalty. The transformation of e-commerce into s-commerce has also
altered the role of the customer. As the Internet has shifted negotiating power from sellers to
customers, the advent of s-commerce represents the collective bargaining power of end-users.
Customers become the firms' primary emphasis. The S-commerce environment has transformed
e-commerce from a product-focused platform to a customer-focused environment. Businesses are
currently investigating the commercial potential of such technology. Amazon and eBay, for
example, are worldwide e-commerce pioneers. Today, these online shopping role models are
redefining their market position with Facebook, Instagram. Bangladesh has also introduced
e-commerce platforms like Daraz and Pickabo. Bangladesh now has the largest market for
consumers who are looking to purchase products online and our study would analyze and

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synthesize all the current studies available on S- commerce providing the pros and cons of
integration.

1.2 Problem Statement

S- Commerce has been a booming point for small and big scale businesses. The lack of proper
knowledge on how to integrate any business model with technology has been a challenging
phase. E-commerce in Bangladesh is rapidly incorporating new technology into the country's
established commercial methods. Bangladesh is a developing commercial segment that
consistently combines a diverse range of internet consumers. Chaldal, Daraz, Pickabo, Alesha
Mart, Bikroy, Othoba, and Priyoshop are just a few of the many community e-commerce sites in
Bangladesh. Customers can examine images, learn about prices, and contact the vendor for
further information before making a purchase at these online retailers, which market their
products on social media sites such as Facebook and Instagram. Customers are drawn to these
establishments because they provide a variety of simple payment alternatives, such as local bank
draft/transfer, bKash, Nagad, Upay, Rocket, and of course, cash on delivery (COD). Clients and
dealers on the other hand, have faced a number of challenges in establishing trust and reputation.
Customers and dealers are always facing challenges in building credibility and confidence.
Buyers that use e-commerce and f-commerce websites encounter several difficulties. In order to
identify the potential opportunities and challenges faced by consumers, particularly in terms of
threat and absence of integrity factors associated with purchasing goods and services via
s-commerce in Bangladesh, this report will analyze users' connections to the internet and
behavioral patterns through a wide range of local user surveys of customers. This improves the
experience of purchasing online by facilitating one-on-one conversation, highlighting the
significance of the partnership between customers and business partners, and elevating customer
expectations for the development of digital commerce.

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1.3 Objective of the study

To identify the potential selling opportunities of goods and services.

To help understand the relationship between social media and commerce
To help traditional marketing adopt to social marketing
To identify threats of online marketing
To help understand the need of specialist in managing the business online

1.4 Limitation of the study

The ever-changing nature of social media platforms and online customer behavior is one
limitation to our study of s-commerce (social commerce). New features, algorithms, and user
preferences emerge on social media platforms on a regular basis. Because of this rapid evolution,
it can be difficult for any researcher to keep up with the current trends and technological
advances in S-commerce.
In addition, cultural, sociological, and technological changes can all have an impact on the
behavior of consumers. As a result, the results of our study undertaken at this certain time may
no longer be valid or for future reference.
Furthermore, complicated interactions between users, influencers, brands, and social media
algorithms are common in s-commerce. In this dynamic context, understanding the underlying
cause-and-effect correlations can be difficult.
Another issue may be the possibility of biased or incorrect data. Social media data can be
manipulated, spammed, and fraudulent accounts, lowering the credibility of research
conclusions. We have taken caution when analyzing data from these platforms and tried to take
into account potential biases in our analysis.
Moreover, in s-commerce studies, the sample selection may not adequately represent the
diversity of social media users or their behaviors. Certain user demographics or specialist online
communities may be underrepresented, limiting the study's conclusions' generalization.
In a nutshell, the research of s-commerce is limited by the fast-paced and ever-changing nature
of social media platforms, the complexity of online consumer behavior, potential biases in data,
sample selection concerns, and ethical considerations are limitations to our study.

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2. Literature Review

2.1 Contextual Literature Review

In general, e-commerce (electronic commerce) refers to the purchase and selling of goods and
services through an electronic network, often the Internet.
S-commerce is a subset of e-commerce, mainly focusing on the buying and selling of goods via
social media platforms. In the past few years, s-commerce has increased rapidly around the
world. The most common platforms used for s-commerce include Facebook, Instagram, Twitter
and Pinterest.

History Of Social Commerce

It was not until 1996 that the people of Bangladesh were exposed to social media. The 1996
National Poll results were released to the public using the Internet, which gained praise from
many parts of the world, particularly from Bangladeshis residing abroad. After that, people
started engaging in different usages of the Internet, although the number is still quite low. This is
mainly because many people do not have access to the internet yet.
At present, there are over 3 million active Facebook users in Bangladesh. As a result, companies
have taken the opportunity to connect with potential customers through the social media
platform.

Classification

Typically, S-commerce can be primarily divided into six sections, each highlighting a separate
value that it can bring into the business.

1. Social Shopping: The social shopping toolset is a way to share the process of online shopping
with others. This includes:
● Group buying, which enables buyers to use their collective bargaining power to buy at
better prices.
● Gifting in groups, allowing customers to buy gifts collectively, such as Apple iTunes
group gift cards.

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 ● Shopping portals, which allows customers to shop from several stores together, aided by
reviews and recommendations.

2. Ratings and reviews: These provide reviews from users and other people, including:
● Customers
● Sponsors
● Experts

3. Recommendations: Encourages peer-to-peer recommendations and referrals in online social

networks, often incentivizing referrers. Sometimes integrated into social shopping platforms
(such as Daraz or Pickaboo),which combine ratings and reviews with social shopping tools.
These include:
Referral programs: Customers are rewarded for recommending other customers
Social Recommendations: Recommendations are made based on customers who share similar
profiles

4. Social Ads and apps:

Social Apps: Examples include Facebook & Instagram, which enables consumers to contribute
and interact socially.
Social Ads: Placing ads on social media platforms such as YouTube and Facebook

5. Social Media Optimization:

News Feed often provide good deals and exclusive information
Media sharing enables users to advertise and promote their products and services

6. Communities and Forums: Some of these include:

User forums, in which users often solve each others’ problems related to products or tasks. (e.g.
Apple discussions, Thread less forums)
Q&A forums, that enable users to contribute answers to common questions in a specific structure
Brand communities, which are private groups of customers or partners, usually created to serve
advisory or loyalty purposes

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Benefits of Social Media Commerce:

1. Aids in brand building: Communicating with customers is key to build brand loyalty and
retain customers. Through social platforms, brands can interact with customers and assist them
whenever required.

2. Direct communication of buyer with seller: Selling online enables the seller to make their
products appear on the buyer’s newsfeed. This creates a personal communication platform by
enabling to like, comment and share.

3. Globalization: S-commerce covers a broader concept compared to e-commerce, with more

people having access to the platforms. This is because data is now available in hundreds of
languages, enabling foreign buyers to communicate with the brands easily.

Drawbacks of Social Commerce:

Although S-com is highly beneficial for consumers, sellers face some troubles with the
platforms.
1. Time Consuming: Companies need to invest lots of time and effort to make consumers aware
of their brands and products. They need to keep updating their content in order to compete with
other brands.

2. Negative Feedbacks: Consumers who have a bad experience with the brands often provide
unfavorable opinions, which tarnish the brand’s reputation.

3. Limited Reach: Although social platforms have a high reach, they are still limited in size. A
regular mobile application is likely to have more customer engagements, as they can shop from
the application directly.

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2.2 Theoretical literature Review

Social Commerce, also known as S-commerce, is the active involvement and engagement of
buyers and sellers in the buying, selling and marketing of goods and services online.

Summaries of a few previously published research papers Social commerce are provided below.

Wang and Zhang, 2012

Social Commerce is a form of commerce mediated by social media involving the convergence
between the online and offline environments.

Leitner and Grechenig, 2009

By incorporating user-generated content into the storefront, social commerce enables firms to
reach worldwide consumers more effectively than they might through traditional retail venues.
Customers can communicate online and share knowledge about goods and services.

Saundage & Lee, 2011; Shanmugam, Sun, Amidi, Khani, & Khani, 2016)
S-commerce represents a paradigm shift in commercial practices and creates a new area of study
for information systems.

Hajli, 2014b
The idea behind s-commerce is that social media enhances vendors' business dealings by
fostering stronger relationships with clients, enhancing the quality of those relationships,
boosting sales, and fostering client loyalty.

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3. Research Methodology

3.1 Research Type

Before attempting to quantify widespread responses into statistically inferable data, exploratory
research is the researcher's instrument for better understanding a problem.Exploratory research is
research done to look into an issue that has not been well studied, has not received enough
attention, or is generally not well understood.Steps to conduct exploratory research-Identify the
problem,Create the hypothesis, Conduct further research.
In our research we are making some hypothesis questions to understand the behavior of our
participants to understand their perception for social commerce. Following the research will lead
us to the point we are searching for. Exploratory research is flexible, low cost and insightful.

3.2 Research Approach

It was a qualitative research type where we tried to capture people's perception about social
commerce. In the survey questions were set to have thought of people, not numbers. The answers
gave us the idea how people see the social media site as a purchasing point and the trust issue
regarding the fact.
We collected primary data from the participants who were asked to give their opinion. We get to
know if people are using it , how often they use it, how they got the suggestion and if they ever
get cheated from an s-commerce site. We made our survey based on the questions and made our
analysis and findings.

3.2.1 Data Collection Method

We created a google survey form on S-commerce to collect data on 25th July 2023 and
forwarded it to our friends, classmates, family members etc. We sent it through social media and
whatsapp. We gave them some briefings on S-commerce and then asked them to complete the
survey. We received a total of 42 responses.

3.6. Data Analysis Method

In our survey we asked people some questions on S-commerce. The majority of the people who
participated in the survey are aged from 19-24. Among the people who participated in the survey

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60% was male demographic and 40 % were female. The first question that was asked was if they
have ever been persuaded to buy something because of social media post or commercial, to
which 50% responded they have been persuaded many times, 17.5% of the people responded that
they have been persuaded quite a few times and again 17.5% responded to a few times and the
rest 10% said they have been very rarely persuaded. Next question was if they believe that
traditional marketing strategies are still effective. To which majority which is 47.5% responded
most probably. Third question was if they have ever been a victim of an online shopping fraud.
To which only 32.5% responded very rarely and never but the Majority responded to quite a few
times and many times. Fourth question was if they believe people always prefer online shopping
over traditional and 40% responded most times but only 7.5% responded never. Fifth question
was if they would recommend other people to shop online and the majority, which is 57.5%, said
most probably. When asked what is the main reason they prefer online shopping, the majority
said it's for convenience. The next question was if they always find the exact product or service
that they were looking for and to which 50% said most times, 27.5% said often, 12.5% said
always and only 10% said not very often. The final question was to evaluate how effectively
social media's interactive features have been blended into traditional marketing to engage
customers and create lasting relationships and the two major responses were there is little effort
put into interacting and engaging with the audience on social media, which leads to low level of
customer connection and little two-way communication and although efforts to engage and
communicate with clients via social media are ongoing, they could be more proactive and
tailored to build stronger bonds.

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4. Analysis, findings and implications

4.1 Analysis

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4.2. Findings

Based on the survey, it appears that social media and online advertisements are effective in
persuading people to buy products. However, many people have also experienced online
shopping fraud. Despite this, many people still prefer online shopping for its convenience and
would recommend it to others.
Based on the survey data, it appears that social media and online advertisements are effective in
persuading young adults to buy products. A majority of respondents aged 19-24 said that they
had been persuaded to buy something multiple times because of social media posts or
commercials. This highlights the importance of social media marketing and advertising in today's
digital age.
However, the survey also found that many people have been victims of online shopping fraud.
This suggests that there is a need for increased security measures in online shopping to mitigate
the risks of fraud. Thus requiring a specialist to help with the security protocols and
management.
Despite the risks, many people still prefer online shopping for its convenience. This highlights
the importance of convenience in the online shopping experience. Additionally, the survey found
that traditional marketing strategies still hold relevance in today's digital age, with almost half of
respondents saying that they are most probably effective. Since almost ⅓ of the population
belongs from the urban area, many people may not have proper knowledge of online shopping.

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Overall, the survey data suggests that social media and online advertisements are effective in
influencing purchasing decisions among young adults, but there is a need for increased security
measures in online shopping to mitigate the risks of fraud. Stronger security measures like
two-factor authentication and biometric verification should be implemented by businesses to
address the issue of online purchasing fraud. Companies can also educate customers more about
online shopping scams and how to recognize and stay away from them. In conclusion, it's critical
for businesses to give security precautions and consumer education first priority in order to
reduce the risks of online purchasing fraud.

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4.3 Implications

Integrating social media and e-commerce, social commerce has revolutionized the way
businesses interact with consumers and conduct online transactions. This new trend has
theoretical and practical implications for organizations, requiring a thorough review and
adjustment of their management information systems (MIS). The main impacts are:

Theoretical Implications:

Consumer Behavior Understanding: Social commerce generates vast amounts of consumer data,
providing valuable insights into customer preferences, behaviors and trends. Organizations
need to integrate advanced data analysis tools into their MIS to effectively analyze this data
and gain a deeper understanding of their audience.

Social influence and Trust: Social commerce relies heavily on social networks, where peer
recommendations and reviews greatly influence purchasing decisions. MIS should focus on
tracking and evaluating social impact metrics to build trust with potential customers.

Omnichannel integration:Social commerce blurs the lines between online and offline shopping
experiences. MIS should include seamless omnichannel integrations that allow customers
to browse, purchase, and return products across channels with a consistent information and
experience.

Practical Implications:

Real-time Monitoring and Response: Social commerce operates in a dynamic environment with
real-time interactions. MIS must continuously monitor social media platforms to ensure prompt
response to customer inquiries, complaints and feedback.

Inventory and Supply chain Management:Social commerce can experience sudden spikes in
demand due to viral trends and campaigns. MIS must support accurate inventory tracking and
efficient supply chain management to prevent stockouts and optimize product availability.

Security and Privacy: With increased online transactions, ensuring data security and user privacy
becomes paramount. MIS must implement robust security measures to protect sensitive
information and comply with data protection regulations.

The emergence of social commerce presents significant opportunities and challenges for
businesses. While the theoretical sense emphasizes understanding consumer behavior and social
impact, the practical sense emphasizes the need for real-time monitoring, personalization and

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data security. Considering these impacts in your MIS strategy will help your business thrive in
the evolving environment of social commerce.

5. Conclusion

In Conclusion, social commerce has become a transformative force in the digital landscape,
revolutionizing the way businesses interact with consumers. This report highlights the growing
importance of social media platforms as a viable sales channel and marketing tool. Social
commerce has enabled brands to engage directly with their audience and drive
personalized and engaging shopping experiences.
Through innovative features such as shoppable posts, influencer collaboration, and
user-generated content, businesses are increasing conversion rates and strengthening brand
loyalty. Integrating social elements into e-commerce efforts has enabled seamless product
discovery and increased word-of-mouth marketing.
As social commerce continues to evolve, it's critical that businesses adapt their strategies to take
advantage of this dynamic trend. Analyzing customer data, monitoring new platforms, and
investing in social commerce infrastructure are key to staying competitive in this ever-changing
landscape. By harnessing the power of social media, businesses can create new revenue streams
and solidify their position in the digital marketplace.

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Appendix

https://docs.google.com/forms/d/1RIyI12B9rK9_5GQiQvazFzX484QbZasrB6BEUANaB_M/edi
t?ts=64bfb890

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